OTAQ, a maritime tech company, considers exiting the Aquis exchange due to cost concerns.
- The firm notes that share price fluctuations and limited investor access are harming its business.
- Delisting could save OTAQ up to £1.2 million annually in regulatory costs.
- A shareholder vote on this proposal is scheduled for December 10th.
- The decision reflects a broader trend among tech firms reconsidering UK public listings.
OTAQ, a company that develops technology solutions for the maritime industry, has proposed delisting its shares from the Aquis exchange. This decision comes from concerns about the volatility of its share price, which has negatively impacted the business. Additionally, the firm cites limited flexibility in the market and challenges in gaining consistent access to investors.
The board of OTAQ has declared that remaining listed on the AQSE Growth Market is no longer in the best interest of both the company and its shareholders. It believes that the costs, time, and regulatory demands associated with maintaining its listing are disproportionate compared to the benefits, particularly given the inconsistent liquidity of its shares.
By delisting, OTAQ projects potential savings of up to £1.2 million per year in regulatory expenses. This move is reminiscent of decisions made by other tech firms, such as Quantum Exponential and C4X Discovery, which have similarly opted to delist in recent months.
The proposal for delisting will be voted on by shareholders in the upcoming general meeting set for December 10th. If approved, the cancellation of trading is expected to be finalised by the end of December.
This action is indicative of a broader reluctance among small to medium-sized tech companies to pursue public listings in the UK. The London Alternative Investment Market (AIM) has already seen a notable decrease in listings, reaching a 23-year low. Furthermore, these developments coincide with the unveiling of major pension reform plans in the UK by Chancellor Rachel Reeves, aimed at boosting investments in the tech sector.
OTAQ’s financial performance has also been under scrutiny, with their operating cash flow falling from a £5.2 million profit in 2022 to a loss of £389,000 for the year ending 2023. As of a recent market open, OTAQ’s share price dropped 95% to 0.25p from its peak this year.
The proposed delisting by OTAQ highlights the challenging environment for tech firms on UK exchanges.
